Thinking about buying a Powerball ticket? Here are 5 better ways to spend your money.
Odds are these suggestions will be better for your wallet


The Powerball jackpot has climbed to an estimated $1.4 billion, which marks the third-largest prize in Powerball's history, per USA Today. While that might seem like a tempting amount of money to take a chance on winning, the odds of doing so aren't great. According to Nerdwallet, "the odds of picking all six numbers correctly are about 1 in 292 million." And if you did end up winning, about 24% of your winnings would be withheld for taxes.
In short, even if buying a lottery ticket doesn't cost you a fortune, there are still much better ways to spend your money.
Pay down high-interest debt
Given the unlikely odds of winning the lottery, it's a better bet to put that money toward paying down high-interest debt like credit card debt. As Kiplinger pointed out, "paying off a balance with a 13% interest rate is like earning 13% on your investments — an incredibly valuable use of the money."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Even if it doesn't feel like you're putting much towards your debt, every little bit counts, as it will add up over time. "Let's say you owe $500," The Ascent conceptualized. "If you pay $25 each month toward that debt, our credit card payoff calculator shows that you could pay it off in 25 months."
Stash your funds in a high-yield savings account
Better yet, stash the cash you would’ve used for a lottery ticket in a high-yield savings account. Particularly in a favorable rate environment, these accounts can offer 4.5% to 5% interest.
While that may not sound as nice as a billion-dollar lottery win, it's a surefire bet. As CNN illustrated, if you were to "spend $35 a week on lottery tickets ($1,820 a year)," you're "out $1,720" in the end, even if you won $100 throughout the year. On the other hand, "if you had banked that $1,820 at 5%, you'd have more than $1,900 on hand instead."
Add the money to your retirement fund
Beyond high-yield savings accounts, another way to save the money you would've spent on the lotto is by placing it in a tax-advantaged retirement fund, like a 401(k) or IRA. Especially thanks to the possibility of employer matches and the power of compound interest, extra contributions can really add up over time. For instance, instead of spending $20 a week on lottery tickets (around $1,040 per year), you could "effectively triple your money in 20 years" by putting that money into a 401(k), according to Kiplinger's calculations. And that's without even taking an employer match into account.
Make an extra payment toward your mortgage
Another alternative is to make an extra payment toward your mortgage. As Brian Rellihan, CFP(r), MBA, EA, senior financial adviser with Wise Wealth Partners, told GoBankingRates, "every extra payment toward the principle is a risk-free rate of return equal to the mortgage rate you are being charged," as well as a way of "increasing the equity you have in your home."
To break that out into numbers, "if you pay an extra $320 per year toward a $300,000, 30-year mortgage with a 4% interest rate, you can shave off one year of payments and save $8,238.97 in interest," per GoBankingRate.
Put your money in a 'fun fund'
When you dream of winning the lottery, it's likely you're thinking about more than just paying down debt and topping off your retirement fund. You’re probably looking to have some fun, as well, which brings up another option: Save the money you would've spent on lottery tickets to go do something fun.
"Simply enjoy the money. Put it in a 'fun' fund. To go out to a fancy dinner or go on a vacation," personal finance educator Tiffany Aliche, founder of TheBudgetnista.com and the Live Richer Academy, told CNN.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.
-
Today's political cartoons - March 15, 2025
Cartoons Saturday's cartoons - bogged down, incident report, and more
By The Week US Published
-
Norway's windfall: should it go to Ukraine?
Talking Point Oil-based wealth fund is intended 'for future generations of Norwegians', but Putin's war poses an existential threat
By The Week UK Published
-
5 government-backed cartoons about the White House Tesla sale
Cartoons Artists take on Cybertrump, Trumpmobile, and more
By The Week US Published
-
What's a student loan and how does it work?
The Explainer These loans can cover the cost of tuition, housing and textbooks — but they must eventually be repaid, plus interest
By Becca Stanek, The Week US Published
-
How to get student loan forgiveness
the explainer Four options for paying back (less of!) your federal student loans
By Becca Stanek, The Week US Published
-
ABLE accounts: how they work and who can benefit from them
the explainer These state-administered accounts are available to people with disabilities
By Becca Stanek, The Week US Published
-
5 reasons to file your taxes sooner than later
the explainer Many experts recommend filing well ahead of the annual April deadline
By Becca Stanek, The Week US Published
-
With economic uncertainty, 2025 looks to be a 'No Buy' year
In the spotlight Consumers are cutting back on splurges to combat overconsumption
By Theara Coleman, The Week US Published
-
What are your options if you end up owing taxes?
The Explainer If you can't pay your bill in full, do not despair
By Becca Stanek, The Week US Published
-
5 options for filing your taxes for free
the explainer This year, the IRS has expanded its Direct File program into 25 states
By Becca Stanek, The Week US Published
-
What is the CFPB and how does it protect consumers?
the explainer The Consumer Financial Protection Bureau has had its work stymied by the Trump administration
By Becca Stanek, The Week US Published